Pubdate: Sat, 09 Jan 2016 Source: Ukiah Daily Journal, The (CA) Copyright: 2016 The Ukiah Daily Journal Contact: http://www.ukiahdailyjournal.com/feedback Website: http://www.ukiahdailyjournal.com/ Details: http://www.mapinc.org/media/581 Author: Adam Randall CALIFORNIA GOVERNOR OUTLINES FUNDING FOR MEDICAL MARIJUANA REGULATIONS Gov. Jerry Brown laid out his proposed $170.7 billion budget this week for the 2016-17 fiscal year, and for the first time, detailed funding for the newly enacted Medical Marijuana Regulation and Safety Act, which was designed by lawmakers as a complete regulatory process over the medical marijuana industry. The new regulations were initially financed with a loaned amount of $5.4 million in general funding from the current fiscal year's budget that is due to close at the beginning of July. This loaned amount will be repaid once the Bureau of Medical Marijuana Regulation begins licensing and collecting fees, according to Russ Heimerich, deputy secretary of communications for the Business, Consumer Services and Housing Agency. Under the regulations, licensing won't be required within the medical marijuana industry until 2018. Brown's 2016-17 budget allocates a total of $24.6 million in state funding, broken down as $12.8 million in general funding, $10.6 million from the Medical Marijuana Regulation and Safety Act Fund, also expected to be borrowed from the general fund for the time-being, and $1.2 million in special fund revenues, which are generally produced from state collected tax levies and vehicle taxes and fees, for example. Specific funding proposals include six state departments that will be invested in regulating the medical marijuana industry. It is also projected that 126 job positions will be required to enforce the regulations. North Coast Sen. Mike McGuire, who wrote Senate Bill 643 as part of the overall regulatory package, was pleased Thursday to see progress in the governor's budget process. "His proposal is focused on regulation implementation and significantly enhanced resources for public safety and environmental protection," McGuire said. Department of Consumer Affairs)) Tasked with creating the new Bureau of Medical Marijuana Regulation, which will do the actual regulating of the new laws by overseeing transportation, storage, distribution and the sale of medical marijuana statewide. The bureau will also manage licensing, investigation, enforcement and will coordinate with local governments, according to the budget summary. The Department of Consumer Affairs was allocated $1.6 million in fiscal year 2015-16 general funds to begin, with Brown proposing to allocate $3.8 million from the Medical Marijuana Regulation and Safety Act Fund in which 25 positions will be needed for the 2016-17 fiscal year. Department of Public Health )) Will oversee the licensing and regulation of medical marijuana product manufacturing and testing laboratories. The Department of Public Health received $457,000 in 2015-16 general funding, with the department slated to receive $3.4 million from the Medical Marijuana Regulation and Safety Act Fund for 2016-17, along with 14 dedicated positions. Department of Food and Agriculture)) The department's responsibility, according to the budget summary, will be to "provide Medical Cannabis Cultivation Program administrative oversight, promulgate regulations, issue medical marijuana cultivation licenses and perform an Environmental Impact Report," in which the governor tentatively budgeted $3.4 million in 2016-17, also to cover 18 positions. The department received $3.3 million from the general fund loan in fiscal year 2015-16. Additionally, the Department of Food and Agriculture will be assisted by the Board of Equalization in establishing a "seed-to-sale" program to report the movement of medicinal marijuana products throughout the industry's distribution system in which identifying numbers will be utilized. Department of Pesticide Regulation)) The department will develop regulations for medical marijuana cultivators using pesticides. The new budget calls for $700,000 and three positions. Department of Fish and Wildlife)) The DFW is expected to expand and make permanent its multi-agency taskforce that was created in 2014 "to address environmental impacts of medical marijuana cultivation and work with the State Water Resources Control Board and Department of Food and Agriculture to regulate water diversions," according to the 2016-17 state budget proposal. Accordingly, a $7.6 million general fund allocation is proposed for 2016-17, along with 31 positions. State Water Resources Control Board)) The SWRCB would receive $5.2 million from the general fund and $472,000 from the Waste Discharge Permit Fund for 2016-17, in which 35 positions would be needed in developing and implementing regulatory standards pertaining to the environmental impacts of medical marijuana cultivation. By creating this regulatory program, the budget funding aims to protect "instream flows for fish from water diversions related to marijuana cultivation." Assemblyman Jim Wood, D-Healdsburg, authored Assembly Bill 243 to create the new marijuana regulations, and said Thursday he was excited to see the governor's funding proposals with the $7.6 million allocation to the Department of Fish and Wildlife, and $5.7 million to the SWRCB to create the Watershed Enforcement Team created by his AB 243. "This team will ensure that as the cannabis industry grows, our forests and streams are protected," Wood said. Revisions to the governor's budget are expected by May, with an official enacted budget by this summer. - --- MAP posted-by: Jay Bergstrom